Rates Ease Slightly on Short-Term T-Bills

The Treasury Department sold $11 billion in three-month bills at a discount rate of 6.175%, down from 6.185% last week. An additional $10 billion was sold in six-month bills at a rate of 6.05%, down from 6.07%. The three-month rate was the lowest since Oct. 23, when the bills sold for 6.16%. The six-month rate was the lowest since Oct. 16, when it was 5.99%. The new discount rates understate the actual return to investors--6.36% for three-month bills, with a $10,000 bill selling for $9,845.60, and 6.327% for a six-month bill selling for $9,695.80. Separately, the Federal Reserve said the average yield for one-year Treasury bills, the most popular index for making changes in adjustable-rate mortgages, fell to 6.09% last week from 6.14% the week before.